Loading...
EDA Minutes 08-11-2021MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, August 11, 2021— 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, 011ie Koropchak-White, Lloyd Hilgart, Jim Davidson Staff Present: Jim Thares, Angela Schumann 1. Call to Order Steve Johnson called the Regular Meeting of the EDA to order at 6:00 p.m. 2. Roll Call 3. Consideration of additional agenda items None. 4. Consent Agenda a. Consideration of Approving Regular Meeting Minutes —July 14, 2021 Recommendation: Approve regular meeting minutes —July 14, 2021. b. Consideration of Approving Payment of Bills Recommendation: approve payment of bills through July. c. Consideration of Approving Funding for 2021 IEDC Manufacturers Recognition Event in the amount of $1,050 Item Removed. LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF ITEM C. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED, 7-0. Regular Agenda 4.c. Consideration of Approving Funding for 2021 IEDC Manufacturers Recognition Event in the amount of $1,050 Jim Thares said that Manufacturers' Appreciation Breakfast, formerly Industry of the Year, is a business retention effort sponsored by the Industrial and Economic Development Committee (IEDC) and the EDA. The event is an opportunity to focus on and celebrate the contributions of the Monticello manufacturing and industrial community. It is held each year in conjunction with Minnesota Manufacturer's Week (typically the first week in October). The event is proposed for early October. Economic Development Authority Minutes — August 11, 2021 Page 1 1 6 In the past, the EDA has funded a portion of the costs associated with the event, with city staff completing the planning and organizing. Staff also secured commitments for event sponsorships, similar to prior years, in the amount of $650 to help defray the costs. Expenses for the event include the complimentary breakfast and table decor and preparation, estimated at $1,700 +/-. Invitations and promotions for the event are completed in house at minimal cost. Thares explained that this event is Monticello's opportunity to thank its existing manufacturers and industries and support business retention and expansion activities. The EDA's funding support is vital to holding a successful event. Bill Tapper asked if this was going to be a broader recognition event to include commercial businesses. Thares said that the IEDC discussed opening the event up but ultimately decided to keep it a manufacturing recognition event (limited to the approximate 50 +/- industries) to coordinate with MN Manufacturer's Week. BILL TAPPER MOVED TO APPROVE $1,050 IN FUNDING FOR THE 2021 MANUFACTURERS' APPRECIATION EVENT. MOTION SECONDED BY OLLIE KOROPCHAK- WHITE. MOTION CARRIED, 7-0. 5. Consideration of Resolution #2021-10 Approving a GMEF Loan Agreement between the EDA and Rustech Brewing in the amount $62,555 Jim Thares introduced Bill & Penny Burt, Rustech owners. The Burt's said that the funding request is not for purchasing the building as that is already completed with a Contract for Deed agreement. The total cost to build out the new area is around $107,000 and the gap funding in the amount of $62,555 is being requested from the EDA to purchase the new equipment. If the Burt's are unable to acquire the funds from the EDA, they will work with the bank to finance the full amount. They have initially spoken to the bank about the additional funds needed for the equipment and the bank is open to the financing but they're trying to determine the best route to go. Thares clarified that this is a legitimate expansion that does meet the gap requirements. Thares said he had previously met with the Burt's and asked for additional documentation to further clarify the financing sources and uses for the proposal and that it may be prudent to table the item until staff has an opportunity to further review those materials once they are submitted. The extra time will be helpful to get the final details in order. BILL TAPPER MOVED TO TABLE TO THE NEXT MEETING. MOTION SECONDED BY LLOYD HILGART. MOTION CARRIED, 5-0. ABSTAINED — 2, TRACY HINZ & JON MORPHEW. Economic Development Authority Minutes —August 11, 2021 Page 2 1 6 6. Consideration of TIF Pre -Application from Headwaters Development for Affordable Housing Development Proposal on EDA Owned Land, Country Club Manor, Outlot A Jim Thares said that Headwaters Development, Lakeville, MN, has submitted a TIF Pre - Application and concept multi -family development proposal on the 16.7-acre Country Club Addition site along 7th Street West. The EDA has owned this property for some time. Headwaters is proposing to develop a 100-unit affordable senior (age 55+) apartment building in the western portion of the site and 60 twin -home units (30 pad sites) on the eastern half of the parcel. The 100-unit apartment building will be completed in two phases: 60 units in phase 1 and 40 units in phase 2. The townhomes will be targeted to the senior owner and rental market. Those units will be single story structures consisting of 1,200 square feet +/- per unit with attached two stall garages. The total unit count in the first phase of development is 120 (60 + 60) or 7.3 units per acre. Headwaters is an experienced developer, and the City of Monticello recently had a positive development experience with them as they completed the Willows Landing Assisted Living facility located at 9872 Hart Boulevard. The 2020 Housing Study indicates a there is a sizeable demand for affordable housing units, approximately 145 to 175 units. The Headwaters proposal would help meet this demand, especially for seniors (55+). Ultimately, staff defers to the EDA regarding the proposed concept and the use of TIF assistance to support the development. Mike Hoagberg, President, Headwaters Development, introduced himself, saying that they have been extremely happy to be part of the Monticello community. He briefly touched on the focus of this project and explained that it's kind of an extension of Willows Landing into the community for the long-term. They are focused on age targeted multi- family living. They have a passion for providing high quality living options for seniors. This development will be designed for the active senior. They are proposing a sizable affordable component to this, including 40% affordable units. Bill Tapper said he's concerned about selling the west end of the property until the future interchange is determined. Hoagberg said that they initially had the design flip-flopped but once they finished the wetland delineation, it was clear that the topography of the site would dictate various concept adjustments now reflected in the most recent plan. Angela Schumann said the Monticello 2040 guide plan recognizes the Orchard Road location for a future interchange. The rationale is that there is not enough developable land area at County Road 39, and it would not support the cost for the interchange. There are also various alignment considerations so it was determined that the NW area would be more feasible. Hilgart said that he concurs with that, and he doesn't think having an interchange is viable at the County Road 39 location since there isn't enough land to Economic Development Authority Minutes — August 11, 2021 Page 3 1 6 support it. Jon Morphew asked about whether they had taken the noise of the interstate into consideration. Hoagberg said that they have developments in other communities next to highways without issues. He said they design the structures with that in mind. They are prepared to go into full application and move forward quickly. What they're looking for tonight is whether there is a consensus to move forward. The consensus from the EDS is to continue to move forward with this application from Headwaters. Hoagberg said the goal, provided everything moves along smoothly, is to start with construction in the spring of 2022. 7. Consideration of Resolution #2021-11 Authorizing the 2022 HRA Special Benefit Property Tax Levy in the Amount of $388,000 and the General Fund Budget in the Amount of $425,000 Jim Thares said that Staff is asking the EDA to consider Resolution #2021-11 authorizing the 2022 HRA Special Benefit property tax levy in the amount of $388,000 and the EDA General Fund Budget in the amount of $425,000. The proposed tax levy is an increase of $21,700 over the 2021 certified levy. In percentage terms, it is 5.9 percent increase. Thares explained that the proposed budget reflects the efforts and the resources needed to effectively carry out the EDA's Work Plan goals and overall mission of facilitating economic development, redevelopment and housing activities that expand the tax base, increase employment opportunities, and create a vibrant economy. Some of the 2021 Work Plan activities underway right now, will carry over into 2022. They include Block 52 redevelopment efforts such as assembly of additional land and/or demolition activities, marketing of the Block 34 and Cedar -Garden Center sites, continuation of a Downtown Facade Improvement Grant Program (estimated additional cost of $100,000), industrial development land acquisition(s) and potential strategic land acquisition in the core downtown to facilitate redevelopment as opportunities arise. The 2021 EDA Workplan is attached as supporting documentation to this report. TRACY HINZ MOVED TO APPROVE RESOLUTION #2021-11 (NOTING THAT THIS IS ACTUALLY #2021-10) AUTHORIZING THE 2022 SPECIAL BENEFIT HRA PROPERTY TAX LEVY IN THE AMOUNT OF $388,000, AND THE EDA GENERAL FUND AMOUNT OF $425,000. MOTION SECONDED BY BILL TAPPER. MOTION CARRIED, 7-0. 7.5. Consideration of Accepting Quote for Architectural Services related to Facade Improvement Grant Program Jim Thares said that staff received a Facade Improvement Grant submittal from Hammer's Hair Lounge that is considered "nearly complete". One of the essential missing items is the architectural sketch -rendering for the fagade improvements. The Hammer's building, located at 144 Broadway, has not yet had an architectural rendering completed for the facade program. As a reminder the EDA had previously authorized Economic Development Authority Minutes —August 11, 2021 Page 4 1 6 Cuningham Architects to produce renderings of each building facing Broadway in Block 35 as a method establishing an acceptable improvement standard. Thares further explained that the architectural rendering is needed as outlined in the fagade program guidelines to keep moving forward on the Hammer's Hair Lounge proposal. The former architect, Cuningham, recommended Mr. Olson and believes that he can serve the EDA well in the required fagade improvement program design process. Staff also believe that having Mr. Olson available to provide guidance and feedback on project design may be useful as other developments are proposed in the downtown area. To move forward with Hammers' proposed facade upgrades, staff is asking the EDA to accept the quote from Shawn Olson, Architect, in the amount of $990 and an hourly rate of $75.00 per hour for additional, as needed, consulting services for architectural review and guidance. Schumann said based on experience, she estimates approximately 5-6 additional hours may be needed. Jim Davidson said it would be safe to say not to exceed $1,500. Lloyd Hilgart felt the not to exceed should be higher and proposed $2,000. BILL TAPPER MOVED TO APPROVE THE QUOTE FOR ARCHITECTURAL SERVICES RELATED TO THE FACADE IMPROVEMENT GRANT PROGRAM FROM SHAWN OLSON, ARCHITECT, IN THE AMOUNT OF $990 FOR THE ARCHITECTUREAL RENDERING AND NOT TO EXCEED $2,000 FOR ADDITIONAL CONSULTING SERVICES FOR ARCHITECTURAL REVIEW AND GUIDANCE. MOTION SECONDED BY JON MORPHEW. MOTION CARRIED, 7-0. Jim Davidson said that when staff goes back to determine an hourly rate when working with the architect that he wants to see a definition of what hourly means to them. He would also like to suggest having a half-hourly rate as those rates can add up quickly and for instance, a phone call doesn't typically take an entire hour. 8. Economic Development Director's Report Jim Thares reviewed the Economic Development Director's Report included in the agenda packet. Thares said that Granite City Real Estate, is holding an open house and tour of the new residential Rivertown Suites on Thursday August 26 at 3:30 p.m. They are inviting all EDA members and staff to the event. Economic Development Authority Minutes — August 11, 2021 Page 5 1 6 9. Adjourn TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:14 P.M. MOTION SECONDED BY JIM DAVIDSON. MOTION CARRIED, 7-0. Recorder: Beth Gree 418 Approved: August 11, 2021 Attest: s, Economic Development Director Economic Development Authority Minutes — August 11, 2021 Page 6 1 6